PRESENTED BY GROUP 1

ORGANIZATIONAL
ETHICS
Introduction
An organization is a collective individuals with a common mission while ethics
may be described as an attempt or endeavour by individuals, to understand what is
right and wrong.
Organizational ethics refers to the standards of behavior that guide how people
within a company or institution should act. It's about making fair, honest, and
respectful decisions that benefit everyone involved. Upholding these standards
builds trust, improves culture, and helps organizations succeed in the long run.
ETHICAL CORPORATE
BEHAVIOUR
Organizational ethical issues can be
handled at three levels:

Corporate Mission
Constituency Relations
Policies and Practices
Types of Organization
1. Exploitative organization is one that takes unfair advantage of its employees,
customers, or other stakeholders for its own gain.
2. Manipulative organization is one that intentionally influences the behavior or
decision-making of its employees, customers, or other stakeholders through
deceptive, coercive, or underhanded means.
3. Holistic organization is one that views itself as an interconnected system, where
the various departments, processes, and people work together as an integrated
whole to achieve common goals.
4. Balanced organization is one that maintains a harmonious equilibrium between
various organizational elements, such as its structure, processes, culture, and the
needs of its stakeholders.
CORPORATE CODE
OF ETHICS
CORPORATE CODE OF ETHICS
Corporate ethical codes can be defined as the
standards and beliefs of organization. These
standards and beliefs are made by the
managers of the organization. These ethical
codes can be used to adjust the thinking and
attitude of the individuals in the organization.
CORPORATE CODE OF ETHICS
Snoeyenbos and Jewell define three elements to
implement ethical behaviour in the organization. These
elements are:

1. Implementing the corporate ethical code;

2. Introducing an ethics committee;
3. Introducing a management training program that
includes ethics training.
CORPORATE CODE OF ETHICS
Organizations can handle the issue of ethics by incorporating the code of business
conduct in the corporate structure.
1. Ethical codes for discipline 7. Performance of fair performance appraisals
2. Proper code of dressing 8. Personal and cultural ethical codes
3. Avoiding abusive language 9. Not using official property for personal use
or actions 10. Performance of good quality of work
4. Punctuality 11. Having initiative
5. Legalistic ethical codes 12. Conservation of resources and protection
6. Always following instructions of quality of environment
from superiors
TYPES OF CODES OF ETHICS
Principle-Based - Designed to enable the employee to make ethical decisions
based on appropriate values e.g, "treat people fairly" or "don't be dishonest"

Policy-Based - Guideline as to how to act in specific ethical dilemma situations

(reducing the need for thinking)
1. Conflicts of interest
2. Disseminating proprietary information
3 .Receiving and giving political gifts
4. Equal opportunities
ADVANTAGES OF A CODE OF ETHICS
1. Code of ethics can be used to handle outside pressure.
2. They can also be used in making overall strategic decisions.
3. These codes can be used to define and implement the policies of the organization
and distribute work between the employees.
4. Code of ethics can be used to optimize the public image and confidence of the
organization.
5. They can be used to increase the skills and knowledge of the individuals.
6. Code of ethics can also be used to respond to the different issues of stakeholders.
7. These codes of ethics can be used to discourage improper requests from employees.
8. They can also strengthen the enterprise system
 DEVELOPMENT OF
ETHICAL CORPORATE
BEHAVIOUR
 DEVELOPMENT OF ETHICAL CORPORATE
BEHAVIOUR
Identifying Practical Issues and Assigning Responsibilities
The various ethical issues that can arise in business and society are:

1. Employee rights 6. Bonded labour

2. Ethical business conducts 7. Exploitation of unorganized
3. Environmental protection 8. Minimum wages
4. Child labour in business 9. Obligations of large and
5. Discrepancies in the wages of multinational corporations
women employees
DEVELOPMENT OF ETHICAL CORPORATE
BEHAVIOUR
Analysing Existing Practices and Framing a Code of Conduct
This approach deals with the subject of public policy and
with the identification of unethical practices. There are
various areas of conduct that require some amount of
government regulation.
 BENCHMARKING
A process for organizational development that involves comparing an
organization's performance and practices against the best-in-class
competitors to identify areas for improvement. It facilitates learning from
other organizations, helps reallocate resources, and trains employees for
efficient performance. The process typically involves team-based
activities, new ways of working, and internal, functional, or competitive
benchmarking. Key steps include determining performance areas,
identifying competitors, setting measurable standards, and developing an
action plan. By driving continuous improvement, benchmarking enhances
organizational development.
 BENCHMARKING
The following is the sequence of steps involved in an effective benchmarking
process:
1. Determine the key performance areas that need to be benchmarked. These
include products and services, customers, business processes in all departments
and organizations, business culture and calibre and training of employees.
2. Identify the most relevant competitors and best organization in the relevant
industry.
3. Set the key standards and variables that need to be measured.
4. Measure the standard variables regularly and objectively.
5. Develop an action plan to gain or maintain superiority over competitors.
6. Specify programs and actions to implement the action plan and monitor the
ongoing performance of the organization.
 FUNDAMENTAL PHILOSOPHICAL
PROBLEMS
Under this approach, business ethics can be defined as an attempt
to keep ethical obligations. This approach deals with the relationship
of the individual and the society and it is used to identify the area of
development of the society and its culture. It also focuses on the
differences between personal morality and social morality. The main
aim of this approach is to identify and define business values.
FUNDAMENTAL PHILOSOPHICAL
PROBLEMS
These are 2 examples of users of code of ethics:
For School: For Business:
Administrators Employees
Teachers Customers
Students Suppliers
Owners and Other Providers of Capital
Employees
Government
Society in General
BUSINESS
VALUES
BUSINESS VALUES
A business value refers to a set of
beliefs pursued by and organization.
Business values like ‘customer
satisfaction’, ‘enthusiastic teamwork’
and ‘state-of-the-art provision for
production’ are some of the commonly
pursued values by several organization.
BUSINESS VALUES
Most common values that facilitate in improving profits and the
image of the organization are as follow:

Persistent progress
Customer satisfaction
Personnel development
Innovation
Optimal use of resources
ETHICAL LEADERSHIP
Importance of Leaders in an Organization
A leader acts as a friend to the employees he is leading.
A leader recognizes the potentialities of the individuals
and transforms them into realities.
A leader wins the confidence of the employees of an
organization.
A leader unites the people as a team and builds up
team spirit.
A leader maintains discipline among his group and
developes a sense of responsibility among them.
ETHICAL LEADERSHIP
Importance of Leaders in an Organization
A leader builds up a high morale among the employees
of the organization.
A leader motivates his group in order to achieve the
goals and objectives of an organization.
A leader maintains the ethical standards among the
employees of an organization.
A leader acts as a link between the work groups and
the forces outside the organization.
 Leadership is a form of management, and can be defined
as the art of getting things done by others. Thus, the
term management divides all the employess of the
organization into two groups. There groups are:

MANAGERS WORKERS
Managers are the Workers are the
individuals in the individuals who are
organization who are working under the
responsible for directing control of the
the activities of others. managers or leaders.
 ETHICAL ISSUES
IN ORGANIZATION
ETHICAL ISSUES IN ORGANIZATIONS
Identifying the conflict issues in the organization and trying to avoid them.
Deciding different methods to motivate employees.
Managing fairness in employee performance appraisals.
Protecting secret information of the organization.
Identifying the areas of interest of customers, employees, suppliers,
owners, and the staff.
Taking action against the reports of complains in the organization.
Handling different problems of employees.
Taking corrective action against employees.
 ADVANTAGES OF ETHICS
MANAGEMENT PROGRAM
Ethics management can provide the necessary operating values and behaviour
to the organizations.
These programs are used to align the operating values and behaviour.
Ethics management programs are used to schedule different ethical
requirements.
These programs are used to make the organizations aware of ethical issues.
These programs provide structural mechanisms to handle ethical problems.
They also provide some guidelines to decision-making.
 GUIDELINES FOR MANAGING ETHICS IN ORGANIZATION

1. Identify ethics management as a process

2.Use ethics programs to manage behaviour in organizations
3. Avoid Ethical Dilemma
4.Combine ethics management with other management practices
5. Develop ethics management programs using cross-functional
teams
6. Value Maintenance
 ROLES AND RESPONSIBILITIES IN ETHICS
MANAGEMENT
1. The chief executive officer of the organization must support the ethics management programs.
2. A committee or group should be developed in the organization to control the development and
operation of the ethics management program.
3. A committee or group should be developed which should be responsible for training the employees
on the policies and procedures of the ethics management program and should resolve any ethical
dilemmas that may arise.
4. A person in the organization should be designated as ombudsperson who has the responsibility of
investigating or resolving complaints from the employees of the organization against the ethics
management program.
5. Each person of the organization is responsible for the implementation of the ethics management
programs.
 Managerial Concerns
Three Managerial Approaches:
1. The stockholder theory holds that managers’ primary ethical responsibility is to
increase profits for stockholders without violating laws and engaging in frauds.
2. The social contract theory argues that companies have ethical duties to society,
including enhancing economic satisfaction and avoiding harmful practices,
based on empirical and normative factors.
3. The stakeholder theory asserts that managers must balance the interest of all
stakeholders, including groups like competitors an government agencies, by
integrating political, legal, economic, technological, and social considerations.
 PRESENTED BY GROUP 1

THANK YOUU!!
Alyssa Cuerdo Diana Mae Estopedo Alexandra Mapanao
Cher Ami Merano Jhazzlin Plazuelo Dutchess Uy